What is a suspension agreement?

The term “hold agreement” is used in many different senses in the financial world. All uses of this term refer to situations where the parties involved in a negotiation agree to a temporary stop to relieve the pressure of negotiations and make room for an agreement. Agreeing on a standstill agreement can bring benefits to […]

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What is a syndicated loan?

Syndicated loans are loan instruments underwritten by a group of lenders rather than a single lender. Lenders on this particular type of loan work through one or more commercial or investment banks, known as arrangers. The syndicated loan structure generally requires one of the coordinators to act as trustee, providing the borrower with a clear […]

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What is a stock registry?

A stock register is a database maintained by a company to track the history of its stock issues. This database contains detailed information about the company’s shares and is used to record information about the company’s shareholders. For publicly traded companies, maintaining a complete and accurate record of holdings is critical to ensuring that the […]

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What is a surety bond?

A surety agreement is a clause in a surety agreement, or debt agreement, that outlines one of the terms of a bond. Grouped together, these covenants describe the bondholder’s rights and the issuer’s restrictions on the bond. Its main purpose is to protect the title holder. The terms outlined in a surety agreement are legally […]

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What is a Structural Adjustment Program?

A structural adjustment program is a plan implemented by the World Bank and the International Monetary Fund (IMF) in a developing nation to try to make its economies more productive. The purpose of such a program is to help the borrowing country pay off its debts and have a growing economy that will sustain them […]

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What is a supplemental contract?

Supplemental agreements are legally binding documents used to modify contracts that are already in place. This type of document is sometimes used as a means to allow the existing contract to remain in effect with the same end date while some clauses or terms of the employment relationship are added or removed. A supplemental agreement […]

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What is a subscription agreement?

Investment opportunities come in many shapes and sizes, but the subscription agreement is possibly the most customizable of them all. This deal sells shares in a company to individual investors. This important legal document serves two purposes for the company selling the shares, as it protects the shares and solicits valuable data from investors. In […]

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What is a state?

According to the law, an estate is the term for a person’s assets, all of a person’s money and property that has an established financial value. This will include intellectual property such as copyrights, patents and trademarks, anything that can be transferred to another party when necessary. An estate generally becomes effective as such only […]

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What is a stock index fund?

A stock index fund is a type of mutual fund that tracks the performance of a specific stock index, such as the Standard & Poor’s 500 Index, the FTSE 100 Index, the Hang Seng Index and the Dow Jones Industrial Average. Typically, these funds invest in stocks, which are considered equities because they represent an […]

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What is a stock certificate?

Also known as a stock certificate, a stock certificate is a physical paper representation of stock ownership. Share ownership denotes ownership of a part of a company known as a share, which means that the share certificate also represents shareholder ownership in a publicly traded organization such as a company or corporation. Shares are traded, […]

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What is a spot sale?

The term “cash sale” can be used in many different contexts. In almost all situations, a cash sale involves the purchase of goods or services, and involves immediate possession by the new owner, with no time lag between purchase and full possession. People engage in spot sales on a daily basis, both in the world […]

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What is a special tax?

Excise duties are taxes levied on the production and sale of private goods. One of the most widespread examples of a consumption tax is the additional tax that many nations impose on alcohol. There are a number of reasons for a nation to require a special tax, from a desire to raise additional funds to […]

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